Detecting risks of inaccuracies in customs declarations for consumption tax

Customs

This algorithm helps Customs to select goods for inspection based on risk. It uses declaration data from companies and considers whether or not there are risks of inaccuracies in customs declarations.

Last change on 9th of December 2024, at 14:36 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

Public finance

Begin date

03-2013

Contact information

[e-mail]

Link to publication website

https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/douane_voor_bedrijven/accijns_en_verbruiksbelasting/inleiding_accijns_verbruiksbelastingen/accijns_en_verbruiksbelasting_cluster

Responsible use

Goal and impact

The purpose of this algorithm is to more efficiently select which returns may have been incorrectly completed. This algorithm focuses on consumption tax products. These are non-alcoholic beverages, such as fruit and vegetable juices and lemonade. It indicates which declarations have a higher risk of smuggling, incorrect data or fraud. Customs checks companies more or less based on the results. By using this algorithm, declarations are processed more efficiently, resulting in quicker checks and possibly quicker releases.

Considerations

Customs processes 700 million declarations annually, including in the field of consumption tax. With this algorithm (risk profiles), Customs can assess declarations more efficiently and faster than without using this algorithm. So declarations are approved or checked faster. And goods are released faster. Also, the algorithm ensures that 'known and trusted' companies are actually checked less.

Human intervention

If a declaration yields a match with a risk profile, a customs officer reviews the declaration. The customs officer asks for more information if necessary. The decision to approve a declaration, or instead to start checking, is also always taken by a human being.

Risk management

A risk profile is always developed and checked by at least two customs staff before use. This is the 4-eye principle. And once the profile is in use, that profile is checked every week. Periodically, Customs checks per profile whether it is still needed. Customs monitors internal and external complaints and incidents. For example, if a profile is not specific and therefore designates too many declarations as higher risk.

Legal basis

Legal basis for consumption tax control lies in the Union Customs Code (DWU), the General Customs Act and the Act on the Consumption Tax of Alcohol-Free Beverages. These laws ensure that consumption tax is levied correctly and properly. The use of risk profiles also relies on DWU Article 46. This says that customs controls should mainly rely on risk analysis by electronic data processing techniques.

Links to legal bases

• https://wetten.overheid.nl/BWBR0005802/Wet op de verbruiksbelasting van alcoholvrije dranken: Wet op de verbruiksbelasting van alcoholvrije dranken
• https://eur-lex.europa.eu/legal-content/NL/TXT/PDF/?uri=celex:32013R0952: Douanewetboek van de Unie

Operations

Data

The algorithm uses all data from the goods declaration. For example, type of goods, goods code, weight, number of packages, consignee, declarant, consignor, country of consignment, EORI number, means of transport, etc.

Links to data sources

https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/douane_voor_bedrijven/naslagwerken_en_overige_informatie/andere_onderwerpen/gegevensvereisten/: Gegevensvereisten douaneaangiften (zie Bijlage B Gedelegeerde Verordening Douanewetboek van de Unie + Bijlage VIa van de Algemene Douaneregeling)

Technical design

The algorithm consists of decision rules created in collaboration with content experts. These decision rules provide estimates of which declarations have a higher risk of smuggling, fraud or incorrect consumption tax data. These decision rules are based on 'if-then-else' combinations. An example:

- if (if) the information we have on a shipment shows that the goods have an abnormal weight,

- (then) then the declaration is checked manually and the consignment may be selected for extended inspection.

- If the goods do not have an abnormal weight (else), we do not stop the shipment. Or at least not based on this criterion.

External provider

Internally developed